HBAR May Be Under Pressure From Death Cross Formation
Date: 2025-03-20 Author: Henry Casey Categories: CRYPTO PAYMENTS
Hedera (HBAR) is struggling to maintain its upward momentum, with technical indicators pointing to a possible fall. Despite attempts to recover, the cryptocurrency remains vulnerable to bearish signals.
Moving average analysis suggests that HBAR may be facing a death cross formation, a signal that historically foretells a decline. This pattern occurs when the 50-day exponential moving average (EMA) falls below the 200-day EMA, signaling a trend reversal to the downside.
A similar situation occurred in June 2024, when the HBAR price went into a protracted decline that lasted five months after the appearance of this signal. In the current conditions, the gap between the two EMAs is 13%, which increases the likelihood of a new "death cross". If the signal is confirmed, the pressure on the token price will increase, complicating its further recovery.
In addition, the market remains under the influence of negative sentiment. Despite a short-term rise in February, the dynamics turned out to be unstable, and HBAR was again under pressure. If this trend continues, the cryptocurrency may experience even more difficulties, which will negatively affect investor interest.
At the time of writing, the HBAR token is trading at $0.1921, showing an increase of 4.3% in a day. However, its movement is still in a descending channel, and the nearest support level is around $0.177. In case of a breakout of this mark, a further decline may lead the price to $0.154, which will increase pressure on investors and complicate the recovery.
On the other hand, if HBAR manages to break through $0.195 and consolidate above $0.222, this could break the current bearish sentiment. In this case, the cryptocurrency will be able to exit consolidation and begin a new stage of growth.
